ANZ-Roy Morgan Consumer Confidence slips to 114.2

• The financial conditions sub-indices were positive. Current financial conditions rose 3.9%, while future financial conditions gained 0.2%. The rise has bought both indices back above their long-term averages.
• Current and future economic conditions were down 2.3% and 1.9% respectively.
• ‘Time to buy a major household item’ was also down, falling 1.2%. The four-week moving average for inflation expectations was stable at 3.8%.

“Weak Q1 GDP and the soft retail figure for April have seen consumer confidence move lower over the past week, despite the rate cut from the RBA. Looking back to the rate cuts in 2015 and 2016, there was no tendency for confidence to rise immediately following the move lower in rates. So it’s not particularly surprising that there has been no immediate boost from the rate cut. Inflation expectations readings below 4% seem to have become the norm in the past couple of month, which is unique in the history of this survey and something the RBA will be taking note of.”